Large-Scale Project Presented to Develop Former Production Site of Baikalsk Pulp and Paper Mill

On 28 March, the VEB Centre hosted a presentation of the project prepared by VEB.RF for the development of the former production site of Baikalsk Pulp and Paper Mill. The event was attended by VEB.RF Chairman Igor Shuvalov, Irkutsk Region Governor Igor Kobzev, business owners, urbanists, and experts.

The development of Baikalsk and, first of all, the former production site of Baikalsk Pulp and Paper Mill l is a high priority for the Russian President and the Russian Government, along with local leaders of the Irkutsk Region. VEB.RF is actively and consistently involved with the project. In 2022, a master plan for the entire Baikalsk was created, forming the basis for a programme of the city’s socio-economic development until 2040, which was approved by the Russian Government. The former production site of Baikalsk Pulp and Paper Mill is currently being cleared: dilapidated buildings and structures are being demolished while about 200 potentially useful buildings and structures are being repaired for possible investment projects. The ECO.SHOP campus has already been created on the former production site, which hosts various events, including international ones. The campus is intended to become the centre of the event and hotel cluster on the shores of Lake Baikal.

“The objective of VEB.RF is to implement the master plan for the development of Baikalsk, which we prepared in collaboration with Strelka Design Bureau and presented to the Russian Government and the Irkutsk Region Government. Our task is to build intelligent production facilities, an intelligent economy and, of course, promote tourism. These are large-scale transformations in the city, caring for those who live there and those who will come to the region,” said VEB.RF Chairman Igor Shuvalov.

“Baikal today is one of the fastest growing tourist destinations. We see great demand from both Russian and foreign tourists. It is important to meet this demand by providing high-quality infrastructure. Under the renovation plan, the former production site of Baikalsk Pulp and Paper Mill will get a new life. New hotels, water transport infrastructure, parks, and public spaces. The integrated project implemented by VEB.RF jointly with local authorities and private-sector companies stimulates both tourist interest and the economy of the region as a whole,” said Russian Deputy Minister of Economic Development Dmitry Vakhrukov.

A new modern district of Baikalsk will be built on the former production site of the pulp and paper mill, as well as creating an all-season international-level resort. The project is implemented on the principles of sustainable development and environmental responsibility, providing outcomes for the development of the economy of the city and the region: the creation of new jobs and the expansion of the tax base. Family recreation on the shores of Lake Baikal will be available to people of different generations with different incomes. The project provides for the integrated development of the locality: new buildings, hotels, water transport infrastructure, restaurants, parks and public spaces, a congress centre, bicycle and pedestrian routes, sports facilities.

Key parameters of the project: the area under development at the first stage is 245 hectares; the total area of new construction is over 180,000 square metres. The total area of new buildings will be over 75,000 square metres. These are low-rise developments, including apartment buildings, townhouses, and detached dwellings. There are also plans to build hotel complexes (four- and five-star establishments) with 600 rooms, public spaces and leisure and entertainment facilities. The project will create about 1,500 new jobs. Investments are to exceed 40 billion roubles, half of which are private-sector money. Tax revenues at all levels should be over 11 billion roubles.

VEB.RF actively interacts with businesses, jointly developing and implementing projects for the development of the local area. For instance, an agreement was reached with En+ to build a multifunctional centre of water resources. In addition, VEB.RF and AZIMUT Hotels signed an agreement of intent on the joint construction of two hotels, whose operator will be AZIMUT Hotels. The launch of both hotels (four- and five-star establishments) is scheduled for 2030.